Group 1 - The company, Luxshare Technology, is planning to issue H-shares and list on the Hong Kong Stock Exchange to enhance its global strategy and international brand image [1] - In 2024, Luxshare Technology reported a revenue of 3.717 billion yuan, a year-on-year increase of 34.07%, and a net profit of 258 million yuan, a year-on-year increase of 97.03% [1] - The main business segments include lifting machines, photovoltaic power generation, enameled wire, and silicon carbide, with enameled wire contributing 50.25% of total revenue [1] Group 2 - The company's overseas sales revenue reached 120 million yuan in 2024, a year-on-year increase of 140.33%, accounting for 3.24% of total revenue [2] - The global lifting machine market is experiencing significant growth, with a market size exceeding 15 billion USD, and Luxshare's high-altitude equipment business revenue increased by 241.65% in 2024 [2] - The company is actively adjusting its development strategy by enhancing cooperation with upstream and downstream enterprises and expanding into overseas markets [2] Group 3 - Luxshare Technology has established a subsidiary in Hefei for the research and production of silicon carbide substrates, focusing on a project to produce 240,000 pieces of 6-inch silicon carbide substrates annually [3] - The silicon carbide market is facing intensified competition due to technological breakthroughs and price declines, but companies with technological advantages and strong financial capabilities are expected to dominate [3] - The company aims to address cost and supply bottlenecks in the short term while increasing R&D investment and moving towards larger 8-inch substrates in the long term [3]

Financial Data and Key Metrics Changes - The company's Q4 2024 revenue was $7.4 million, an 80.3% increase from Q4 2023, but lower than the $8.2 million reported in Q3 2024 [4][10] - Full-year revenue for 2024 was $26.9 million, an 11.5% increase from the previous year [4][12] - Gross profit for Q4 was $2 million, with a gross profit margin of 27.3%, compared to a negative gross profit of $348,000 in Q4 2023 [11][12] - The company recorded a net income of $132,000 for Q4 2024, compared to a net loss of $2.3 million in Q4 2023 [12] Business Line Data and Key Metrics Changes - Revenue from the CBD equipment segment increased by $2.8 million in Q4 2024, driven by aerospace and industrial contracts [10] - The SDC segment saw a revenue increase of 28.8% in Q4 2024, attributed to strong demand for gas delivery systems [11] - Orders for the full year of 2024 were $28.1 million, an increase of 8.9% from 2023 [6] Market Data and Key Metrics Changes - The aerospace and defense market is experiencing ongoing recovery, with a follow-on order of $3.5 million received from an existing aerospace customer [6] - The silicon carbide market remains challenging due to global overcapacity and declining wafer prices [5][8] Company Strategy and Development Direction - The company is focused on four key strategic segments: aerospace defense, microelectronics, energy storage, and industrial [7] - The end of life for the MesoScribe product line allows the company to concentrate on core CBD and SDC product lines [8] - The company aims to build critical customer relationships while managing expenses to achieve long-term profitability [9] Management's Comments on Operating Environment and Future Outlook - Management expects fluctuations in orders and revenue levels due to the nature of emerging growth markets and geopolitical challenges [8][9] - The company is optimistic about its backlog, which was $19.4 million at year-end 2024, a 4.9% increase from 2023 [8] - Future profitability is contingent on new equipment orders and managing inflationary pressures [14] Other Important Information - The company recognized gains of $717,000 from the sale of equipment during fiscal 2024, primarily from the MesoScribe segment [13] - Working capital at year-end 2024 was $13.9 million, slightly down from $14.3 million in the prior year [13] Q&A Session Summary Question: How did the large $10 million silicon carbide coating order come about? - The order was a result of the company's development of a large volume silicon carbide CMC system for aerospace, which met a need from an industrial customer [19][20] Question: Are there other entities that might need similar solutions? - Yes, the technology is applicable to other customers in the industrial space, but demand expansion is necessary [25][26] Question: What are the prospects for new orders for PVT200 systems? - Uncertainty exists due to overcapacity and pricing issues in the wafer market, making it difficult to predict new orders [28] Question: How many major aerospace engine manufacturers are there? - There are four major manufacturers, with the company currently having relationships with three [32][33] Question: Will the company see follow-up orders for spare parts from a previous customer? - Spare parts orders have started to increase, and the company will continue to support that customer [41] Question: Are there potential opportunities in the battery materials business? - The company is exploring opportunities beyond its current customer, 1D, but the market is competitive [42][44] Question: What is the outlook for operating margins? - Margins are expected to improve, potentially exceeding 30% if overhead is managed effectively [51][57]